The Fluence Corporation (ASX: FLC) share price is up today after it shared 3 pieces of positive news.
Fluence announced it has received 2 separate orders from large state-owned enterprises in China and a US$2.4 million contract to supply 3 NIROBOX water treatment units in Taiwan. All up, the orders are worth US$4.6 million, with the supplier of wastewater and reuse treatment products predicting follow-on business.
At the time of writing, the Fluence share price is up by 11.9%, trading at 23.5 cents.
Let's take a closer look at Fluence's announcements.
Image source: Getty Images
What's driving the Fluence share price today?
First volume order from Three Gorges
Fluence has received its first volume contract for the Yangtze River Great Protection Program, managed by China Three Gorges Group Corporation, worth a total of US$2.2 million.
The order consists of 29 of Fluence's Aspiral MABR wastewater treatment products, to be implemented in 14 townships in the Hunan province.
China Rail Order
Fluence has also been awarded another contract by Beijing China Railway Science New Technology Co Ltd, a subsidiary of China Academy of Railway Sciences Cooperation Limited, known as China Rail.
This is the first wastewater reuse project in China for the company. It's worth US$28,000 and includes 2 Aspiral Micro wastewater treatment units. The Aspiral Micro units were chosen for their ability to treat wastewater to irrigation quality.
The company states that wastewater reuse is a key part of China's current five-year plan.
NIROBOX order in Taiwan
Finally, the company announced it has received a US$2.4 million contract to supply 3 NIROBOX units to drought-stricken Taiwan.
The contract is expected to begin in May. Fluence's units will be placed to convert seawater into drinking water for 30,000 people in central Taiwan.
According to the company, it was awarded the contract because it was able to provide a proven product with a quick turnaround.
Fluence stated its partner, ADE Corporation, facilitated the order from Taiwan's Water Resources Agency.
What did management have to say?
Fluence CEO Richard Irving welcomed the news, saying:
Reuse is a major strategic target for Fluence given MABR's competitiveness in meeting the required standards to reuse treated wastewater. Importantly, China's latest five-year plan (2020-2025) for the first time specifies wastewater reuse targets ranging from 25%–35% in water-stressed regions which is anticipated to require significant deployment of new and upgraded treatment.
Based on China Ministry of Housing Data, this represents a US$4 billion market opportunity over the next 4 years assuming new or upgraded treatment is needed to achieve these targets.
Mr Irving went on to discuss the order for Taiwan, saying the company was pleased to continue working with long-term partner ADE Corporation to secure the order.
We anticipate that local drought conditions, combined with increased demand for smart, automated, decentralized solutions, will lead to further business in Taiwan and the region.
Fluence share price snapshot
Today's news comes at a perfect time for the Fluence share price, which is having a poor year on the ASX. While it is up by 6.82% year to date, it's down 24.19% over the last 12 months.
Fluence has a market capitalisation of around $131 million, with approximately 624 million shares outstanding.
